Why Audinate, Lynas, Nine, and Xref shares are falling today

These shares are heading lower as the market climbs on Tuesday. But why?

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The S&P/ASX 200 Index (ASX: XJO) is back on form on Tuesday. In afternoon trade, the benchmark index is up almost 0.5% to 8,419.2 points

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

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Image source: Getty Images

Audinate Group Ltd (ASX: AD8)

The Audinate share price is down almost 3% to $7.12. This morning, analysts at Morgan Stanley retained their buy rating on the audio technology company's shares. However, they have slashed the price target on them by 14% to $9.00 (from $10.50). Morgan Stanley notes that there are concerns that Audinate is facing structural headwinds. While it appears optimistic that the headwinds are cyclical and not structural, it is looking for more colour when the company releases its results later this month.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is down 3% to $6.38. This is despite there being no news out of the rare earths producer on Tuesday. Though, it is worth remembering that its shares did avoid the market selloff on Monday and charged higher. This could mean that some profit taking is happening today. Yesterday's gain appeared to have been driven by news that Gina Rinehart's Hancock Prospecting has increased its stake in the company to 8.21% from 7.14%.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine Entertainment share price is down almost 2% to $1.29. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the media company's shares to a neutral rating with a trimmed price target of $1.45 (from $1.65). UBS made the move amid concerns over increasing content costs and a challenging advertising market. Nevertheless, this price target still implies relatively decent upside potential of 12% over the next 12 months.

Xref Ltd (ASX: XF1)

The Xref share price is down over 19% to 12.5 cents. Investors have been selling this human resources technology company's shares after its shareholders voted against being taken over by Seek Ltd (ASX: SEK). The job listings giant commented: "Despite a unanimous recommendation from Xref's Board of Directors and the Independent Expert concluding that the Scheme is fair and reasonable, and in the best interests of Xref shareholders in the absence of a superior proposal, 67.60% of votes cast were cast in favour of the Scheme, falling short of the required threshold of 75%." The two parties have now agreed to terminate the transaction.

Motley Fool contributor James Mickleboro has positions in Seek. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group and Xref. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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